EXPLAINER: Why Biden is allowing more ethanol in gasoline
WASHINGTON (AP) — The Biden administration says it will suspend a federal rule that bars higher levels of ethanol in gasoline during the summer. The move, which President Joe Biden was set to announce during a Tuesday visit to Iowa, is intended to tamp down prices at the pump that have spiked during Russia’s war with Ukraine. Iowa is a key producer of the corn-based fuel additive.
A look at how that the decision to authorize year-round use of so-called E15 will impact gas supplies, prices and the environment.
WHAT ACTION IS BIDEN TAKING?
Most gasoline sold in the U.S. is blended with 10% ethanol. At Biden's direction, the Environmental Protection Agency will issue an emergency waiver to allow widespread sale of 15% ethanol blend that is usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures.
Senior Biden administration officials said the move will save drivers an average of 10 cents per gallon at 2,300 gas stations that sell E15, as the high-blend ethanol is known. Those stations are mostly in the Midwest and the South, including Texas, according to industry groups.
WHY IS BIDEN DOING THIS?
Lawmakers from both parties and ethanol advocates have urged Biden and the EPA to allow year-round sales of E15, calling it a cheaper and readily available domestic alternative to traditional gasoline. The U.S. has banned imports of Russian crude oil since the country's late February invasion of Ukraine, disrupting global markets and raising prices.
“Homegrown Iowa biofuels provide a quick and clean solution for lowering prices at the pump, and bolstering production would help us become energy independent once again,″ said Sen. Chuck Grassley, R-Iowa, a longtime ethanol proponent. Grassley and 15 other senators sent Biden a...
